A North Carolina rental agreement is a legal contract between a landlord overseeing a rental property and a tenant using the property. North Carolina landlord-tenant law governs and regulates these agreements.
North Carolina Rental Agreement Types
Common Rental Agreements in North Carolina
- North Carolina REALTORS® Residential Rental Contract – North Carolina Association of REALTORS® members use this template. It provides provides an extensive list of rules and procedures, like rent payments and termination procedure.
- North Carolina REALTORS® Short-Term Rental Agreement – North Carolina Association of REALTORS® members use this template for short-term rentals throughout North Carolina. It includes specifics like occupancy limits and cancellation policies.
- North Carolina REALTORS® Commercial Lease Agreement – North Carolina Association of REALTORS® members use this template for single-tenant commercial leases. It includes exterior sign installation rules, environmental compliance guidelines, and other detailed terms.
North Carolina Required Residential Lease Disclosures
- Late Fee Disclosure (required for some leases) – Late fees must be disclosed and agreed in the lease. They may not exceed $15 or 5% of the balance due (whichever is greater) for monthly payments, or $4 or 5% of the balance (whichever is greater) for weekly payments.
- Security Deposit Disclosure (required for some leases) – North Carolina leases collecting a security deposit must disclose the the holding institution and account details (such as license and federal insurance). The tenant must receive this information within 30 days of a lease beginning.
- Water Contamination Disclosure (required for some leases) – North Carolina leases which charge tenants for water or sewage utilities must disclose any known contaminants above state guidelines.
- Lead Based Paint Disclosure (required for some leases) – Landlords must provide an EPA-approved disclosure and informational pamphlet to tenants renting any property built before 1978.
To learn more about required disclosures in North Carolina, click here.
North Carolina Landlord Tenant Laws
- Warranty of Habitability – North Carolina landlords can only rent out habitable property. This means providing certain basic health and safety features like heat, plumbing, and electricity. Landlords must repair any issues within a reasonable time of proper notice. Failure to repair lets a tenant sue the landlord or end the lease. Tenants usually can’t repair and deduct, or withhold rent.
- Evictions – North Carolina landlords may evict for rent default, lease violations, or illegal acts, among other things. Before filing eviction, landlords must serve tenants with prior notice to pay or quit, depending on the eviction type. This means most evictions in North Carolina take between one to two weeks.
- Security Deposits – North Carolina landlords must return any unused portion of a security deposit within 30 days after the lease ends. The state sets a limit on security deposits, depending on the type of tenancy:
- Week-To-Week: Two weeks’ rent
- Month-To-Month: One and one-half months’ rent
- Fixed Term, Over One Month: Two months’ rent
- Lease Termination – North Carolina has different notification standards to end different lease types:
- Week-To-Week: Two days
- Month-To-Month: Seven days
- Fixed Term, One Year or More: One month. A fixed-term lease may also terminate early due to active military duty, landlord harassment, uninhabitable property, domestic abuse, or an agreement between the landlord and tenant
- Rent Increases and Fees – North Carolina doesn’t limit the amount or timing of a rent increase. Month-by-month late rent fees cannot exceed the greater of $15 or 5% of the rent. Week-by-week late rent fees cannot exceed the greater of $4 or 5% of the rent. Bounced check fees have a $35 cap.
- Landlord Entry – North Carolina doesn’t have a specific law about landlord entry. This means the lease sets the entry policies, by default. If the lease is silent, a landlord can enter at reasonable times for purposes such as repairs and inspections, with reasonable advance notice (by custom, at least 24 hours).
- Settling Legal Disputes – North Carolina lets small claims courts hear landlord-tenant disputes as long as the amount in controversy is under $10,000. Unlike many states, North Carolina allows evictions in small claims.
To learn more about landlord tenant laws in North Carolina, click here.
Sources
- 1 N.C. Gen. Stat. § 25-3-506
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A person who accepts a check in payment for goods or services or the person’s assignee may charge and collect a processing fee, not to exceed thirty-five dollars ($35.00), for a check on which payment has been refused by the payor bank because of insufficient funds or because the drawer did not have an account at that bank.If a collection agency collects or seeks to collect on behalf of its principal a processing fee as specified in this section in addition to the sum payable of a check, the amount of the processing fee shall be separately stated on the collection notice. The collection agency shall not collect or seek to collect from the drawer any sum other than the actual amount of the returned check and the specified processing fee.
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